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Gov. Phil Murphy announced the launch of the Office of Strategic Defense Investment.
Unveiled Sept. 3, the New Jersey Economic Development Authority will house the initiative. NJEDA Chief of Staff and External Affairs Officer Emma Corrado, whom NJBIZ profiled last year, will provide oversight.
“New Jersey’s defense sector is a cornerstone of our state’s economy and our nation’s security,” said Murphy. “With world-class military installations and a vibrant network of defense contractors, the Garden State plays a critical role in advancing cutting-edge military technology.”
The governor said the new office will champion the state’s defense industry by:
- Attracting new missions;
- Safeguarding the competitiveness and sustainability of the state’s existing defense infrastructure; and
- Fostering industry growth.
“The creation of the Office of Strategic Defense Investment demonstrates our commitment to ensuring New Jersey remains a leader in this vital industry,” said Murphy, who in July wrote a letter to Defense Secretary Pete Hegseth and Army Secretary Daniel Driscoll expressing concerns about a proposed Transformation Initiative that could directly affect New Jersey’s Picatinny Arsenal.
The Murphy administration noted that the defense sector is a big economic driver in New Jersey. It cited major military installations, such as Joint Base McGuire-Dix-Lakehurst, Picatinny Arsenal, Naval Weapons Station Earle and the 177th Fighter Wing; along a network of defense contractors.
New Jersey’s defense sector is a cornerstone of our state’s economy and our nation’s security.
– Gov. Phil Murphy
$9.4B in federal investments
Key things to know about the
Office of Strategic Defense:
- Will serve as the state’s center of excellence and coordination hub for defense priorities
- Will collaborate closely with the governor’s office, Department of Military and Veterans Affairs and key stakeholders such as:
- Defense Enhancement Coalition, which supports Joint Base McGuire-Dix-Lakehurst and Naval Weapons Station Earle
- Picatinny Enhancement Coalition, which advocates for Picatinny Arsenal
- Will work to elevate the defense sector by providing it with focused support, advocacy, and strategic planning for long-term growth
More than 54,000 personnel work directly on the three military bases. Meanwhile, an additional 22,000 New Jerseyans are employed as contractors or within the supply chain. In Fiscal Year 2023, the installations and contractors brought more than $9.4 billion in federal investment to New Jersey.
The state is home to more than 7,000 defense contractors who receive about $7.3 billion in DoD contracts. Additionally, more than $1.4 billion of that supports manufacturing and research and development across over 1,700 New Jersey companies.
‘A critical step’
“Under Gov. Murphy’s leadership, New Jersey has remained a leader in the defense industry, and the Office of Strategic Defense Investment will ensure the sector’s longevity and growth, which is essential for job creation and economic sustainability,” said NJEDA Chief Executive Officer Tim Sullivan. “By supporting the defense sector, we are driving economic growth and fueling innovation, while supporting our service members, their families, and our national security.”
Corrado said this is not just about national security. She said it’s about jobs, innovation and long-term economic competitiveness for communities across the Garden State.
“New Jersey is home to one of the nation’s most significant defense ecosystems, from three major military installations to thousands of defense contractors, employing more than 70,000 New Jerseyans and contributing billions of dollars to our state’s economy,” said Corrado.
“Under Gov. Murphy’s leadership, this new initiative is a critical step to ensuring our state remains coordinated, competitive, and strong in advancing our defense mission,” she added.
Legislative applause
Lawmakers from both sides of the aisle applauded the announcement.
“The manufacturing, research, and development conducted by New Jersey’s defense industry is vital to maintaining our military’s advantage around the world and sustaining New Jersey’s world-class innovation economy. I am proud to have championed Picatinny Arsenal and the critical work of our defense manufacturing base since my first day in Congress,” said U.S. Rep. Mikie Sherrill, D-11th District, who is the Democrat nominee for governor in 2025. “As threats to our national security continue to grow around the world, the American defense industry has never been more important.
“We must continue to support the cutting-edge research and development New Jersey is known for and solidify our state’s leadership role in these efforts.”
“The new Office of Strategic Defense Investment will keep our state competitive, protect missions, and strengthen one of the most important pillars of our economy, while safeguarding New Jersey’s vital contributions to national security,” said Sen. Raj Mukherji, D-32nd District, chairman of the Senate Military and Veterans’ Affairs Committee and a military intelligence veteran of the U.S. Marine Corp.
“Picatinny Arsenal has long been a center of excellence that is home to world-class research and development facilities, and a powerful economic engine that provides thousands of New Jerseyans with high-quality careers,” said Senate Republican Leader Anthony Bucco, R-25th District. “The creation of the Office of Strategic Defense Investment is an important step to solidify New Jersey’s role as a leader in our nation’s defense industry, protect our military assets, and continue to deliver cutting-edge technology to support the brave men and women who defend our nation.”
‘Levels the field’
Key stakeholders also applauded the move.
“I commend the New Jersey Economic Development Authority for creating the Office of Strategic Defense Investment,” said Emil Kaunitz, a member of the Defense Enhancement Coalition. “This initiative levels the field in enabling New Jersey to aggressively compete for federal jobs and infrastructure funds, which will create new job opportunities and bolster our state economy.”
Marty Kane, member of the Picatinny Enhancement Coalition Board of Directors, said Picatinny Arsenal is essential to the nation’s defense and the foremost authority on ammunition in the world.
“The Picatinny Enhancement Coalition works to highlight Picatinny’s extraordinary accomplishments and an Office of Strategic Defense Investment would be hugely helpful in introducing a much wider audience to the crucial work being accomplished in New Jersey by Picatinny and our other military installations,” said Kane.
‘We have it all’
Brig. Gen. Yvonne Mays is adjunct general of New Jersey and commissioner of Military and Veterans Affairs. She said the state’s citizenry and industry alike have always stood on the front lines of national defense. “We have it all: human talent, strategic location, and historic track record for excellence in critical requirements,” Mays said. “New Jersey’s patriots set the conditions for success and victory.”
Murphy added, “We will continue working closely with our partners in government, industry, and the military to strengthen New Jersey’s defense ecosystem, keeping our communities safe and our economy strong.”
